• EUR/AUD moved higher on Wednesday as investors remained cautiously optimistic about the fragile ceasefire between Israel and Iran.
• The tentative truce helped de-escalate geopolitical tensions and lifted global risk sentiment, encouraging investors to move back into riskier assets.
• On the data front, Australian inflation eased more than expected in May, with CPI rising 2.1% year-on-year, down from 2.4% in April and below the 2.3% forecast, according to data from the ABS on Wednesday.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7950( Higher BB), any close above will push the pair towards 1.8000(Psychological level)
• Strong support is seen at 1.7760 (50% fib ) and break below could take the pair towards 1.7703 (20 SMA).
Recommendation: Good to buy around 1.7890, with stop loss of 1.7800 and target price of 1.7960
